Income (loss) per Common Share

9 Months Ended

Sep. 30, 2021

Note I: Income (loss) per Common Share

Net income (loss) per share is computed by dividing net income (loss) by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net income (loss) per share includes the potentially dilutive effect of common shares subject to outstanding stock options and restricted stock awards using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options and restricted stock awards have been excluded from the calculation of the diluted weighted average shares outstanding because the exercise of those options or the vesting of those restricted stock awards would lead to a net reduction in common shares outstanding. As a result, stock options and restricted stock awards to acquire 2,000 and 15,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the three-month periods ended September 30, 2021 and 2020, respectively, and 2,000 and 15,000 weighted common shares have been excluded from the diluted weighted shares outstanding for the nine-month periods ended September 30, 2021 and 2020, respectively.

A reconciliation of net income per share is as follows (in thousands, except per share data):

	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2021		2020		2021		2020

Numerator:
Net income	$	613	$	659	$	2,496	$	698
Denominator:
Weighted average common shares outstanding		5,349		5,306		5,338		5,290
Dilutive potential common shares		12		5		13		16
Shares used in diluted net income per common share calculations		5,361		5,311		5,351		5,306
Basic net income per common share	$	0.11	$	0.12	$	0.47	$	0.13
Diluted net income per common share	$	0.11	$	0.12	$	0.47	$	0.13